Civic engagement, the leverage effect and the accountable state

A classic solution to the problem of public goods (PG) is their provision through a strong state with the power to collect taxes and to mete out penalties for non-compliance. The need for voluntary collective action remains, however, because binding the state to citizen's interests requires the...

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Published inEuropean economic review Vol. 156; p. 104466
Main Authors Kamei, Kenju, Putterman, Louis, Tyran, Jean-Robert
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.07.2023
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Online AccessGet full text
ISSN0014-2921
1873-572X
DOI10.1016/j.euroecorev.2023.104466

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Abstract A classic solution to the problem of public goods (PG) is their provision through a strong state with the power to collect taxes and to mete out penalties for non-compliance. The need for voluntary collective action remains, however, because binding the state to citizen's interests requires the latter's civic engagement. As a public good in its own right, economic theory expects civic engagement to be underprovided. We conduct the first laboratory experiment in which participants can create a socially efficient central sanctioning scheme (representing the accountable state) through a prior stage of voluntary costly actions that are theoretically ruled out for strictly self-interested agents—a social dilemma. Our experimental subjects sustain civic engagement when its cost is modest, suggesting sustainable cooperation in linked social dilemmas perhaps due to a cost-benefit calculus we call “leverage.”
AbstractList A classic solution to the problem of public goods (PG) is their provision through a strong state with the power to collect taxes and to mete out penalties for non-compliance. The need for voluntary collective action remains, however, because binding the state to citizen's interests requires the latter's civic engagement. As a public good in its own right, economic theory expects civic engagement to be underprovided. We conduct the first laboratory experiment in which participants can create a socially efficient central sanctioning scheme (representing the accountable state) through a prior stage of voluntary costly actions that are theoretically ruled out for strictly self-interested agents—a social dilemma. Our experimental subjects sustain civic engagement when its cost is modest, suggesting sustainable cooperation in linked social dilemmas perhaps due to a cost-benefit calculus we call “leverage.”
ArticleNumber 104466
Author Kamei, Kenju
Tyran, Jean-Robert
Putterman, Louis
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  organization: Department of Economics, University of Vienna, Austria, Department of Economics, University of Copenhagen, Denmark, and Department of Economics, University of Economics in Bratislava, Slovakia
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Snippet A classic solution to the problem of public goods (PG) is their provision through a strong state with the power to collect taxes and to mete out penalties for...
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SubjectTerms Civic engagement
Cooperation
Experiment
Public goods provision
Punishment
Title Civic engagement, the leverage effect and the accountable state
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